Boubakri, Narjess; El Ghoul, Sadok; Saffar, Walid - In: Journal of Corporate Finance 27 (2014) C, pp. 326-344
We examine the influence of political rights on the implied cost of equity capital using a sample of firms from 44 countries. We find that firms' equity financing costs are lower when political rights are stronger. We further find that political institutions' direct impact on the cost of equity...